MIS, 11e Module 1: Information Systems in Business Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Icebreaker: Interview Simulation 1. The class will be broken up into pairs of students. 2. Each pair of students will interview each other to discover interesting or unusual facts 3. Then each pair will introduce each other to the class. 4. Think about connecting a story from your personal experiences to topics that are relevant to this course. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Module Objectives (1 of 3) By the end of this module, you should be able to: • 1.1 Discuss common applications of computers and information systems. • 1.2 Explain the differences between computer literacy and information literacy. • 1.3 Define transaction-processing systems. • 1.4 Define management information systems. • 1.5 Describe the four major components of an information system. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Module Objectives (2 of 3) By the end of this module, you should be able to: • 1.6 Define strategic information systems. • 1.7 Discuss the differences between data and information. • 1.8 Explain the importance and applications of information systems in functional areas of a business. • 1.9 Analyze how information technologies are used to gain a competitive advantage. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Module Objectives (3 of 3) By the end of this module, you should be able to: • 1.10 Apply the Five Forces Model and strategies for gaining a competitive advantage. • 1.11 Review the IT job market. • 1.12 Summarize the future outlook of information systems. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Computers and Information Systems in Daily Life Common uses in daily life: • • • • • • • • • Online classes Grocery and retail stores Banking services Telecommute Smartphones Tablets Social networking Search engines Video-sharing Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Computer Literacy and Information Literacy Computer Literacy - a skill in using productivity software • Word processors • Spreadsheets • Database management Information Literacy – understanding the role of information in generating and using business intelligence • historical, current, and predictive views of business operations and environments • gives organizations a competitive advantage in the marketplace Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 The Beginning: Transaction-Processing Systems Transaction-processing systems (TPSs) • • • • Focus on data collection and processing Used for cost reduction Applied to structured tasks (e.g., record keeping, simple clerical operations, and inventory control) Require minimal human involvement when automated Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Knowledge Check Activity 1-1 On average, how long would a mobile cash transaction take at an ATM? a. 5 seconds b. 1 minutes c. 45 seconds d. 15 seconds Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Knowledge Check Activity 1-1: Answer On average, how long would a mobile cash transaction take at an ATM? Answer: 15 seconds A mobile cash transaction takes 15 seconds compared to 45 seconds for a card-based withdrawal. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Management Information Systems (1 of 2) Management information system (MIS) • • Organized integration of hardware and software technologies, data, processes, and human elements Designed to produce timely, integrated, relevant, accurate, and useful information for decision-making Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Management Information Systems (1 of 2) Tasks in designing an MIS 1. Define the system’s objectives 2. Collect and analyze data 3. Provide information in a useful format MIS applications • Used in both private and public sectors Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 Major Components of an Information System (1 of 6) Exhibit 1.3 - Major Components of an Information System Data – the input to the system Source of data: • External • Internal Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Major Components of an Information System (2 of 6) Exhibit 1.3 - Major Components of an Information System Database – collection of all relevant data organized in a series of integrated files Database Management Systems: • Oracle • Microsoft SQL Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Major Components of an Information System (3 of 6) Exhibit 1.3 - Major Components of an Information System Process – to generate the most useful type of information for making decisions Examples: • Transaction-processing reports • Models for decision analysis Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 Major Components of an Information System (4 of 6) Exhibit 1.3 - Major Components of an Information System Information – the output of an information system Qualities of Useful Information: • Timeliness • Integration with other data and information • Consistency and accuracy • Relevance Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Major Components of an Information System (5 of 6) Example #1 of Information Systems: • A state university stores all student data in a database. Student Data Collected: • • • • • • First name Last name Age Gender Major Nationality Useful Information: • Generate the estimated number of students for new year. • Knowing which major is the fastest growing. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 Major Components of an Information System (6 of 6) Example #2 of Information Systems: • Textile company stores data on products, suppliers, costs, etc. Process conducts analysis on: • Which salesperson generated the highest sales? • Which product generated the highest sales? The lowest sales? Useful Information: • Generate predictions for the next sales period. • Decide to allocate advertising budget to different products. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 Knowledge Check Activity 1-2 The “Process” component of information system is described as which of the following? a. The output of an information system b. To generate the most useful type of information for making decisions c. A collection of all relevant data that is organized in integrated files d. The input to the system Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 Knowledge Check Activity 1-2: Answer The “Process” component of information system is described as which of the following? Answer: To generate the most useful type of information for making decisions Examples include transaction-processing reports and models for decision analysis. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 Strategic Information Systems Focuses on: • • • Big-picture Long-term goals and objectives Assists in implementing strategies Key Characteristics: • • • • • Goal-oriented Involves top management Multidisciplinary Future-oriented Dynamic Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 Using Information Systems and Information Technologies Information technologies • • • • • The Internet Computer networks • Wired • Wireless Database systems Point-of-sale (POS) systems Radio-frequency-identification (RFID) tags Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 The Importance of Information Systems (1 of 6) • The 2nd most important resource in any organization. • Timely, relevant, and accurate information is a critical tool that • Enhances a company’s competitive position • Manages the four Ms of resources ⮚ Manpower ⮚ Machinery ⮚ Materials ⮚ Money Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23 The Importance of Information Systems (2 of 6) Personnel information system (PIS) or human resource information system (HRIS) • Provide information for personnel to do tasks effectively Decision-making examples: • Choosing the best job candidate • Scheduling and assigning employees • Predicting future personnel needs • Provide reports and statistics on employee demographics • Allocating human and financial resources Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 The Importance of Information Systems (3 of 6) Logistics information system (LIS) • Reduce the cost of transporting materials • Maintain safe and reliable delivery Decision-making examples: • Improve routing and delivery schedules • Select the best modes of transportation • Improve transportation budgeting • Improve shipment planning Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25 The Importance of Information Systems (4 of 6) Manufacturing information system (MFIS) • Manage manufacturing resources • Reduce manufacturing costs • Increase product quality • Improve inventory decisions Decision-making examples: • Ordering decisions • Product cost calculations • Space utilization • Bid evaluation process used with vendors and suppliers • Analysis of price changes and discounts Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26 The Importance of Information Systems (5 of 6) Financial information system (FIS) • Provide information to financial executives Decision-making examples: • Improve budget allocation • Minimize capital investment risks • Monitor cost trends • Manage cash flows • Determine portfolio structures Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 The Importance of Information Systems (6 of 6) Marketing information system (MKIS) • Improve marketing decisions • Provides timely, accurate, and integrated information about the marketing mix • 4Ps: Price, Promotion, Place, and Product Decision-making examples: • Analyze market share, sales, and sales personnel • Sales forecasting • Price and cost analysis of items sold Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 Using IT for a Competitive Advantage (1 of 4) Three strategies for successfully competing in the marketplace: • Overall cost leadership • Differentiation • Focus Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 Using IT for a Competitive Advantage (2 of 4) Overall cost leadership strategy • Bottom-line strategy - improve efficiency by reducing costs. • Top-line strategy - generate new revenue by offering new products and services • Example use-case: Walmart Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30 Using IT for a Competitive Advantage (3 of 4) Differentiation strategy • Make products and services different from competitors • Examples: • Apple – Different looking computers and ease of use • Amazon – Personalization and recommendations Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31 Using IT for a Competitive Advantage (4 of 4) Focus strategy • Concentrate on a specific market segment • Examples: • Apple ‒ Target iPhone to consumers rather than businesses ‒ Macintosh computers marketed to creative professionals • Abercrombie & Fitch ‒ Targets high-end clothing to low-income customers • Nordstrom ‒ Targets high-end clothing to high-income customers Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32 Porter’s Five Forces Model: Understanding the Business Environment (1 of 3) Five Forces Model: •Buyer power •Supplier power •Threat of substitute products or services •Threat of new entrants •Rivalry among existing competitors Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33 Exhibit 1.4: The Five Forces Model Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34 Porter’s Five Forces Model: Understanding the Business Environment (2 of 3) Buyer power • High when customers have many choices and low when customers have few choices Supplier power • High when customers have fewer options and low when customers have more options Threat of substitute products or services • High when many alternatives to an organization’s products and services are available Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35 Porter’s Five Forces Model: Understanding the Business Environment (3 of 3) Threat of new entrants • Low when duplicating a company’s product or service is difficult • Focus strategies are used to ensure that the threat remains low Rivalry among existing competitors • High when competitors occupy the same marketplace position • Low when there are few competitors Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36 Knowledge Check Activity 1-3 Which of the Porter’s five forces model is high when customers have many products and services to choose from? a. Supplier power b. Threat of new entrants c. Buyer power d. Threat of substitute products or services Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37 Knowledge Check Activity 1-3: Answer Which of the Porter’s five forces model is high when customers have many products and services to choose from? Answer: Buyer power Buyer power is high when customers have many choices and low when they have few choices. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38 The IT Job Market (1 of 5) Categories of IT jobs • • • • • • • Operations and help desk Programming Systems design Web design and Web hosting Network design and maintenance Database design and maintenance Robotics and artificial intelligence Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39 The IT Job Market (2 of 5) Chief Technology Officer (CTO)/Chief Information Officer (CIO) Oversees long-range planning and monitors new developments that can affect a company’s success. Manager of Information Systems Services Responsible for managing all the hardware, software, and personnel within the information systems department. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40 The IT Job Market (3 of 5) Systems Analyst Responsible for the design and implementation of information systems. Network Administrator Oversee, design, and implement internal and external network systems that deliver correct information. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41 The IT Job Market (4 of 5) Data Administrator Responsible for database design and implementation. Computer Programmer Writes programs or software segments that allow the information system to perform a specific task. Webmaster Designs and maintains the organization’s web site. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42 The IT Job Market (5 of 5) Other high-demand IT jobs: • • • • • • • • • Data scientist Social media manager Social media architect Telework manager or coordinator Search engine optimization specialist Business architect Mobile technology expert Enterprise mobile developer Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a Cloud architect publicly accessible website, in whole or in part. 43 Outlook for the Future (1 of 2) Predictions • Hardware and software costs will decline • Artificial intelligence and related technologies will improve and expand • • • • • Computer literacy of users will improve Networking technology will improve Personal computers will improve in power and quality Internet will grow Hackers will become more sophisticated Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 44 Outlook for the Future (2 of 2) Major computing trends • • • • • • • • • Ubiquitous computing Internet of Things (IoT) 3D and 4D printing Pervasive analytics Context-aware computing Smart machines and devices Cloud computing Software-defined applications and infrastructures Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a Security publicly accessible website, in whole or in part. 45 Self Assessment Why is information systems such an important part of modern businesses? Knowing the large amount of information systems used in businesses, do you have a preference on the type of IT job you would pursue as a career? Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 46 Summary (1 of 3) Now that the lesson has ended, you should be able to: • 1.1 Discuss common applications of computers and information systems. • 1.2 Explain the differences between computer literacy and information literacy. • 1.3 Define transaction-processing systems. • 1.4 Define management information systems. • 1.5 Describe the four major components of an information system. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 47 Summary (2 of 3) Now that the lesson has ended, you should be able to: • 1.6 Define strategic information systems. • 1.7 Discuss the differences between data and information. • 1.8 Explain the importance and applications of information systems in functional areas of a business. • 1.9 Analyze how information technologies are used to gain a competitive advantage. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 48 Summary (3 of 3) Now that the lesson has ended, you should be able to: • 1.10 Apply the Five Forces Model and strategies for gaining a competitive advantage. • 1.11 Review the IT job market. • 1.12 Summarize the future outlook of information systems. Bidgoli, MIS, 11th Edition. © 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 49
